“Renault is playing its survival”, warned Bruno Le Maire. The loan of 5 billion euros, “I haven’t signed it yet”, explained the Minister of Economy in an interview published Thursday May 21 in the evening by Le Figaro, by asking car manufacturers to make three commitments, including “The location in France of their most technologically advanced activities”.
Renault, a French industrial flagship, finds itself in a very bad patch, having seen its factories and its commercial network paralyzed by the health crisis and the confinements decided in particular in Europe, which brought the new market down by 76.3% in April on the Old Continent. The diamond group was already weakened before this episode, having suffered in 2019 its first net loss in ten years.
The French government, Renault’s largest shareholder with 15% of the capital, has agreed to come to its aid by guaranteeing a bank loan of around 5 billion euros, which has been approved by the European Union. But it still has to be validated by Mr. Le Maire and a decree published in Official newspaper.
Automotive group commitments expected
The group is due to present its new strategic plan on Friday, May 29, and has already estimated the necessary savings at 2 billion euros. This plan could include the closure of three medium-sized factories in France, as well as a reconversion of the emblematic industrial installation of Flins (Yvelines), according to the Duck Chained and a source close to the file.
If the manufacturer did not comment on this information, it sparked outcry, Prime Minister Edouard Philippe warned on Wednesday that the government would be “Uncompromising” on the preservation of sites.
“We are continuing our discussions as part of the support plan for the automotive industry”, said Bruno Le Maire Thursday evening, revealing that this plan, awaited by the entire industry, would be announced next week by the President of the Republic.
In this context, “We ask manufacturers to make commitments in three directions: the electric vehicle, respect for their subcontractors and the location in France of their most technologically advanced activities”, detailed the minister.
“All the aid that we provide to companies must be directed in these two directions: the decarbonization of the French economy and the improvement of its competitiveness. “
Suspension of budgetary discipline rules for 2021
In this interview, the Minister of Economy also returns to the rules of budgetary discipline between members of the European Union: “We hope that the rules of the stability pact, suspended for 2020, will also be suspended for 2021.” “Nothing would be worse than to revive the economic machine while pressing the brake on public spending. This is a mistake that was made in 2009 and that we will not make again “added the Minister.
Asked about the 500 billion euro revival proposed on Monday by French President Emmanuel Macron and German Chancellor Angela Merkel, which has yet to receive the anointing from other members of the Union, some of whom are reluctant, he said. :
“Austria, the Netherlands, Sweden, Denmark have expressed their reservations. However, the economies of these states benefit from the single market: it is therefore in their interest that the economy reboots among all their partners in Europe. “
“This restart will depend on the strength of the recovery plan. Raising debt together is the cheapest instrument because the rates are low and we will pay down the debt over a long period of time, over ten years. So this is the most frugal solution, pleaded Mr. Le Maire. Europe cannot be built on national interests alone, it can only be built on solidarity. “
Finally, in the tax area, the Minister reiterated his wish for a «International agreement on the taxation of digital giants, which are emerging strengthened from the crisis, to set up a minimum corporate tax taxation to fight against tax optimization and to introduce a carbon tax at the borders of the ‘European Union “.
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